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Tax treatment for signing bonus

My son received his signing bonus on his first day of employment. The check was cut in advance of his first day so the company tax treatment was a 1099misc. The check was given to him on his first day of employment. I believe the proper treatment should have been W2. Here is the IRS ruling for Rev. Rul. 2004-109 which seems to unequivocally support my position. Timing of when the check was cut is irrelevant, let along they did not provide it to him until he reported for his first day of work. Also, to reaffirm, he was an employee, not a contractor.

https://www.irs.gov/irb/2004-50_IRB/ar07.html

What is your interpretation?

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Return the check and ask Payroll to process it thru payroll to him, so it is reduced by statutory payroll deductions.
If they decline, perhaps they are trying to avoid ER payroll taxes, in which case he needs to save about 30% of the bonus for his next annual tax filing.

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